China has long been a place where investors have made some great profit making investments and Deyu Agriculture Corp. (OTC: DEYU) might be next one. With over $1 in cash per share outstanding as of September 30, 2012, this integrated producer, processor, marketer, and distributor of organic and other agricultural products in China and internationally may be the best penny stock for 2013. Although DEYU stock isn’t the most actively traded shares on the OTC markets right now, the Company’s efforts to provide an updated investor presentation on their website is justification enough to have this added to the list of penny stocks to watch.
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DEYU Stock Chart
Market Cap: 13.22M
Last: 1.24, up 0.24 (24.00%)
Volume: 4,100
Dollar Volume: $4,196
High: 1.24
Low: 1.00
Trades: 8
Average Trade Size: 512
Authorized: 75,000,000
Issued and Outstanding: 10,658,266
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For the past two months, Jianming Hao, CEO of Deyu Agriculture, has been preparing to get investors more access to the Company by launching an investor relations campaign. While traders are usually inundated with awareness campaigns of companies which have just changed their name and have no revenues, Deyu has been a giant in their industry on pace to book over $200 million in new revenues again in 2012. Who in their right mind wouldn’t want to know more about a Company like this, especially when they have almost $1 per share in cash as per their September 30, 2012 balance.
Deyu Agriculture operates in three divisions: Corn, Grain and Bulk Trading. For the three months ended September 30, 2012, revenues decreased $27.9 million, -33.1%, to $56.5 million compared with $84.4 million for the same period in 2011. While Q3 showed a decrease in revenues, the Company attributes the cause being due to a 10.1% increase in the average sales price of Corn due to inflation in China. Regardless of the decrease, net revenues for the nine months ended September 30, 2012 were $175.0 million compared with $170.5 million for the same period in 2011.
The agriculture giant has an abundance of cash, $11,963,208 and net accounts receivable of $27,658,431 as of September 30, 2012. The two are just a small portion of the $109,091,996 total assets of Deyu Agriculture. When compared to the total liabilities on the Company’s books, $26,760,654, it is amazing that DEYU stock is trading at such a price. Now that Grassroots Research has jumped on board and issued an equity research report on the Company, look for DEYU to begin to see a slow climb to a level much more appropriate for the sales and assets the company has been reporting.
About DEYU Stock
Deyu Agriculture Corp. is a vertically integrated producer, processor, marketer and distributor of organic and other agricultural products made from corn and grains operating in Shanxi Province in the People’s Republic of China. The Company has access to over 109,000 acres of farmland in Shanxi Province for breeding, cultivating, processing, warehousing, and distributing grain and corn products through their extensive wholesale network in over 15 provinces and a retail distribution network of approximately 20,000 supermarkets and convenience stores in 29 provinces across China. Click here to view the SEC filings for DEYU, here to view their website.
Last 4 Trading Sessions:
| Date | Last | Change | % Change | Volume |
| 12/06/12 | 1.0000 | +0.2400 | +31.58% | 1,800 |
| 12/04/12 | 0.7600 | -0.2400 | -24.00% | 11,700 |
| 11/20/12 | 1.0000 | unch | unch | 1,100 |
| 11/15/12 | 1.0000 | +0.2500 | +33.33% | 100 |
Bottom Line: DEYU is a penny stock gem of a find for investors willing to go long. The lack of regular trading activity is a set back for the moment, but with extended coverage and a new president at the helm, DEYU stock could become more aggressive in the PR circles and begin to see a tremendous increase n their PPS.
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